Category: Business

Source: Etu Union

The release of a new report highlights that natural gas is not a viable solution for Aotearoa’s energy future, further underscoring the need for a well-planned Just Transition for workers and communities in Taranaki.

The report, released by 350 Aotearoa, Common Grace Aotearoa and the Centre for International Corporate Tax Accountability and Research (CICTAR), argues that tightening gas supplies and declining production margins are increasingly shifting Methanex’s business model from methanol production to on-selling gas, at a significant mark-up.

E tū is concerned about the job insecurity facing its members at Methanex, Aotearoa’s largest natural gas consumer, and the broader impact on downstream workers in Taranaki’s engineering and construction sectors.

Jesse Davis, a tradesperson in the industry in Taranaki, says workers are feeling the pressure.

The uncertainty in the oil and gas industry is stressful for workers unsure about their future,” Jesse says.

“Many of us may have to leave Taranaki without work, but we want to stay, support our families, and help the region thrive. I want my children to have opportunities here, not be forced to leave due to a lack of jobs.

“Oil and gas have provided well-paying jobs, but when that ends, we don’t want Taranaki to decline. A Just Transition can keep Taranaki prosperous and vibrant. A clear plan would reduce workers’ stress and provide a path forward. New sustainable energy projects could let us use our skills locally and support our families.

The Government must urgently act on a Just Transition – it’s time for action, not words. A Just Transition needs long-term vision and commitment beyond short political cycles.”

E tū Assistant National Secretary, Annie Newman, says workers are in a “wait and see” mode:

“There are redundancy clauses in place for some workers, but no Just Transition commitments at the employer level. Workers are aware that nothing is guaranteed in the medium-to-long term, and the lack of a clear plan leaves many in limbo.”

Methanex plays a key role in Aotearoa’s gas industry, yet financial reporting suggests the company faces a gradual decline, with some analysts predicting a complete exit from New Zealand by 2029, if not sooner. This has significant implications for the region, with challenges going beyond Methanex itself.

“Downstream companies that support Methanex have already seen significant job losses. Traditionally, Taranaki-based contractors had 80% of their work locally and 20% elsewhere. Now that’s flipped, with only 20% of their work coming from the region.”

The report highlights a growing understanding that the oil and gas industries have limited long-term benefits. Offshore wind projects, such as those proposed by Copenhagen Infrastructure Partners and NZ Super Fund, present a better opportunity for Taranaki workers and communities.

“Offshore wind projects are a real solution for a Just Transition in Taranaki, providing both construction and long-term maintenance jobs while contributing to Aotearoa’s energy security. The recent exit of BlueFloat highlights the need for a coordinated national approach to ensure these opportunities are realised.

“E tū also calls for a focus on more sustainable energy solutions as the price of renewable energy technology, such as wind, solar, and battery storage, continues to fall. Natural gas is not the answer for Aotearoa’s energy future. Financially and geologically, the industry cannot deliver the energy security that New Zealand needs.

Annie says any energy transition must prioritise the workers and communities that have powered Aotearoa for generations.

“The Taranaki community deserves better than being left to pick up the pieces. We need a Just Transition that ensures good jobs, community stability, and a sustainable future for Taranaki and all of Aotearoa.”

Source: Etu Union

E tū is appalled with the Government’s decision to increase the minimum wage by less than inflation for a second year in a row.

Minister of Workplace Relations and Safety, Brooke van Velden, announced today that from April next year the minimum wage will be $23.50, an increase of just 35c, or 1.5%. The Consumer Price Index (CPI) most recently reported annual change was 2.2%.

A calculation done by the New Zealand Council of Trade Unions shows this will make full time minimum wage workers worse off by $1,206 per year, compared to how much they would have earned if minimum wage increases had kept up with inflation.

The announced rate is $4.30 below the Living Wage, which is $27.80 for 2024/25. The difference is $172 per week, or $8,944 per year.

E tū Assistant National Secretary, Annie Newman, condemns the decision.

“The Government has made another callous decision which will make in-work poverty even worse in Aotearoa,” Annie says.

“This is effectively a pay cut for the most vulnerable and lowest paid people in the workforce. Costs continue to rise across the board, with housing, food, transport, energy, and other essentials becoming even less affordable.

“Workers and their families are already up against extra costs imposed by this Government, such as ACC levy increases, the reinstatement of prescription fees, and slashing public transport subsidies.

“The Government seems hell-bent on making life hardest for those who need the most support.”

Annie says every worker deserves the Living Wage.

“The difference the Living Wage makes for workers is life changing. When our members win the Living Wage, they’re in a much better position to make ends meet. Many report being able to reduce their very long hours, allowing them to spend decent time with their families.

“Increasing wages in the best way to reduce in-work poverty. The Government should be lifting the minimum wage above the rate of inflation to bridge the gap between the minimum wage and the Living Wage.

“Instead of increasing the minimum wage above CPI, or even keeping up with it, they’ve chosen to give minimum wage workers a pay cut in real terms. It’s a decision to exacerbate the cost-of-living crisis for those it hits hardest.

“As Aotearoa’s workers finish 2024 and look ahead to the new year, those who earn the least are finding out today the Government has chosen to make life even harder for them in 2025. It’s frankly outrageous.”

Source: Etu Union

On International Human Rights Day, E tū is calling on the Government to help fix gender-based pay discrimination by delivering pay equity for care and support workers.

E tū is the union for care and support workers, including those working in residential aged care, home support, disability support, and mental health and addictions. Over 65,000 care workers in Aotearoa New Zealand have been in a prolonged process for a pay equity settlement.

E tū Community Support Services Industry Council Convenor, Marianne Bishop, says it’s important to acknowledge the disparity on International Human Rights Day.

“The underpayment of people working in the care sector is a global issue, which reflects the undervaluation of work traditionally done by women,” Marianne says.

“In Aotearoa, we made some progress with Kristine Barlett’s historic equal pay settlement in 2017, but the pay has slipped back to near the minimum wage.

“A decent and enduring pay equity settlement is well overdue. Carers do this job because we want to make a real difference, and help people live their lives with dignity. Poor rates of pay are taking advantage of our commitment to helping people.

“By valuing care and support workers, we also show that we value the vulnerable elderly and disabled people who they care for.”

E tū National Secretary, Rachel Mackintosh, says fixing pay equity is an important human rights issue.

“Human Rights Day commemorates the anniversary of one of the world’s most groundbreaking global pledges: the Universal Declaration of Human Rights (UDHR),” Rachel says.

“This landmark document enshrines the rights that everyone is entitled to as a human being – regardless of race, colour, religion, sex, language, political or other opinion, national or social origin, property, birth or other status.

“To honour our commitment to human rights, we must end gender-based pay discrimination. Aotearoa has had some significant pay equity victories, but care and support workers are still waiting – and they’re fed up.

“It comes down to a political choice. The Government has prioritised tax cuts for landlords and tobacco companies, but won’t front up to pay women fairly.

“They must choose a different path, to prioritise working people and our communities. A decent and enduring pay equity settlement would be an excellent start.”

E tū is part of the Pay Equity Coalition Aotearoa (PECA), an alliance of civil society organisations working together to bridge the gender pay gap.